Go to this IRS website for information on cancellation of debt - https://www.irs.gov/newsroom/what-if-my-debt-is-forgiven
You should have received a Form 1099-C from the lender. This forgiven debt is included as income on your 2022 tax return.
To enter a Form 1099-C
Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Scroll down to Less Common Income
On Miscellaneous Income, 1099-A, 1099-C, click the start or update button
On the next screen, on Cancellation of debt (Form 1099-C) or the abandonment and/or acquisition of secured property (Form 1099-A), click the start or update button
Or enter 1099-c in the Search box located in the upper right of the program screen. Click on Jump to 1099-c
